Following Generally Accepted Accounting Principles,which method of estimating uncollectible accounts is NOT acceptable?
A)allowance method
B)percent-of-sales method
C)aging-of-receivables method
D)direct write-off method

Question

Quizplus · Accepted Answer

The direct write-off method is not acceptable under Generally Accepted Accounting Principles because it does not match expenses to revenues in the correct period and violates the matching principle. The allowance method, percent-of-sales method, and aging-of-receivables method are all acceptable methods for estimating uncollectible accounts.

Following Generally Accepted Accounting Principles,which Method of Estimating Uncollectible Accounts